Redwood has grown its bank partnerships over the last couple of years to prepare for a market in which depositories want to move away from mortgage lending.

A small group of lenders accounted for the majority of prime non-agency MBS issued in 2024. JPMorgan Chase was the leader in the market as both an issuer and lender. (Includes three data tables.)

Increases in non-agency originations contributed to earnings growth at PennyMac in the fourth quarter.

The mortgage marketplace and conduit is offering prime and non-QM jumbo products.

Dart Bank’s wholesale division launched a new jumbo product.

Combined, non-agency jumbos and conforming jumbos accounted for 16.1% of total originations during the third quarter. Nonbanks are increasing their lending as some banks pull back. (Includes three data tables.)

Non-agency jumbo originations increased during the third quarter of 2024, though not enough to keep pace with the broader market. (Includes data table.)

The non-agency securitization market has picked up pace over the past two weeks as issuers prepare to close deals before the end of the year.

The REIT is off slightly from its pace in the second quarter. However, executives are optimistic that rising product demand and bank partnerships should continue to spur growth.

The seasonal decline in purchase-mortgage originations and interest rate trends will likely prompt jumbo lending to slow in the fourth quarter.